You can make your charitable gifts go further with smart and simple financial strategies. In fact, you may find that you can increase your giving by 20 percent or more with some thoughtful planning.
We recently spoke with RAF Trustee Dave Oeth, Retired Partner at RSM, and he shared some smart giving strategies.
What is a donor advised fund?
A donor-advised fund is like a charitable investment account, for the sole purpose of supporting charitable organizations you care about. When you contribute cash, securities or other assets to a donor-advised fund at a public charity, like Rochester Area Foundation, you are generally eligible to take an immediate tax deduction. Then those funds can be invested for tax-free growth and you can recommend grants to virtually any IRS-qualified public charity.
When you give, you want your charitable donations to be as effective as possible. Donor-advised funds are the fastest-growing charitable giving vehicle in the United States because they are one of the easiest and most tax-advantageous ways to give to charity.
What are the advantages of donating appreciated securities?
Why consider giving long-term appreciated securities? Donors are able to give up to 20% more because capital gains taxes are minimized. You’ll take a fair market value deduction and provide more support for your favorite charities.
What are the advantages of “bunching” charitable donations?
Many taxpayers won’t qualify for the necessary deductions to surpass the standard deduction threshold established by tax reform in 2017. However, you can still receive a tax benefit by “bunching” multiple years’ worth of charitable giving in one year to surpass the itemization threshold. By donating these assets to a donor advised fund, you can continue to spread out your gifts to charities of your choice, even in years you take the standard deduction.
Have more giving questions?
ellen@rochesterarea.org | 507-282-0203 | rochesterarea.org